IDEM 2010 Update Indiana Steel Environmental Group January 7, 2010

1. IDEM 2010 UpdateIndiana Steel Environmental Group January 7, 2010 Thomas W. Easterly, P.E., BCEE, QEP Commissioner IN Department of Environmental Management

2. Indiana State Budget Challenges • Indiana’s most recent revenue forecast is $1.88 Billion below the budgeted amount for the FY 2010-2011 biennium. • State Agencies reduced by 20+% • Higher Education reduced by 6% • K-12 Education reduced by 3% • Budget surplus will need to be spent

3. Response to Reduced State Income • Eliminated 2009 & 2010 raises. • Strategic Hiring Review—Using attrition to reduce spending. • Reduce/eliminate grants, contracts, etc. • Restrictions on travel and purchasing. • Will maintain essential State services.

4. New IDEM Budget Actions • Returning staffing to January 2005 levels through attrition. • Moving most of Shadeland staff to IGCN and renegotiating the lease. • Canceling or renegotiating a number of service contracts. • Voluntary unpaid leave program.

5. IDEM Staffing Levels

6. IDEM’s Mission IDEM is responsible for protecting human health and the environment while providing for safe industrial, agricultural, commercial and governmental operations vital to a prosperous economy.

7. How Does IDEM Protect the Environment? Develop regulations and issue permits to restrict discharges to the environment to safe levels. Inspect and monitor permitted facilities to ensure compliance with the permits. Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. Educate people on their environmental responsibilities.

8. Performance Metrics Dec 2009

9. Performance Metrics June 2005

10. IDEM Enforcement * 2009 data is complete through November 30. 2009 Violation Letters do not include those issued directly by the programs.

11. EPA Enforcement Priorities • Clean Water Act - Wet Weather • Combined Animal Feeding Operations (CAFOs) • Combined Sewer Overflows (CSOs)/Sanitary Sewer Overflows (SSOs) • Storm Water

12. EPA Enforcement Priorities • Clean Air Act - New Source Review/Prevention of Significant Deterioration • Acid Production • Cement Production • Coal-Fired Power Plants • Glass Manufacturing

13. EPA Enforcement Priorities • Clean Air Act - Air Toxics • Air Toxics in Schools • Flaring • Leak Detection and Repair • Resource Conservation and Recovery Act (RCRA) - Mineral Processing

14. EPA Enforcement Priorities • Resources Conservation and Recovery Act (RCRA) and Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) - Financial Responsibility

15. Region 5 Enforcement Priorities • Integrated Iron and Steel • Concentrated Animal Feeding Operations • Lime Plants • Non-Recovery Coke Production

16. Criminal Pleas and Convictions • Erler Industries, North Vernon, IN, Falsified Title V Certifications • $1,000,000 criminal fine • $25,000 in restitution to Midwest Environmental Enforcement Association • $100,000 in restitution to IDEM (hybrid vehicles) • Develop an environmental training program • Implement a zero tolerance policy for violations • Public apology in the local newspaper

17. Criminal Pleas and Convictions • Herb Corn—Rochester Indiana POTW Operator, falsification of DMRs, MROs and NPDES permit renewal application. • Sentenced to 12 months in federal prison • Alan Hersh—Hassan Barrel RCRA felonies (Fort Wayne). • Sentenced to 15 months plus restitution • Wainwright, Gary, IN—gun charges • Sentenced to 108 months in federal prison

18. Agency Initiatives • EDMR—Electronic reporting of waste water discharge monitoring reports. • Currently available for all facilities. • EPA is considering a rule to require electronic reporting for all DMRs. • Agency-wide adoption of Continuous Improvement using Lean/Kaizen and other methodologies to improve processes and increase efficiency.

19. The New EPA • Administrator Jackson’s Stated Priorities: • Environmental Justice • Children's Health • Climate Change • The Initiatives we observe include: • Air Toxics Monitoring at Schools • Reemphasis of Enforcement and publishing of compliance information • Progressing of Greenhouse Gas Regulations

20. Governor Daniels on Endangerment “Hoosiers will suffer in lost jobs and doubled utility payments, all for zero environmental benefit, if this extreme measure is put into effect. Rather than submitting to this bureaucratic usurpation, Congress should clarify that CO2 is not covered by the Clean Air Act and should remind this administration that its power is not dictatorial and its agencies are still subject to the consent of those they govern."

21. Climate Change Science • The unbiased temperature record does not indicate any increase in temperature. • Local heat sources near US measurement stations would be expected to increase the average network temperature by 1.9oC, yet the “observed temperature increase” is 0.7oC. • Satellite measurements since 1978 show cycling temperatures but no sustained increase.

22. Climate Change Science • Geologists believe that the earth was warmer than current temperatures approximately 700 years ago (medieval warming period). • Geologists have produced evidence of significant warming 12,000 years ago, 130,000 years ago and 225,000 years ago. • Reported 20th century temperatures are no higher than historical values.

23. Climate Change Science • Local temperatures may be increased by pavement, air conditioning exhaust, changes in land use and increased atmospheric water vapor from irrigation, etc. • CO2 is a greenhouse gas. However, geological studies, including the recent Vostok ice core work indicate that CO2 changes lag, rather than lead temperature changes.

24. Climate Change Science • Current CO2 levels are about 35% higher than those associated with peak temperatures from about 130,000 years ago as measured in the Vostok ice cores; however the Earth’s temperature is currently lower than those estimated for this historical event.

25. CO2 Cap and Trade Concerns • CO2 is different from SO2 and NOx. • We know how to change gaseous SO2 to a solid sulfate (SO4) compound such as gypsum which can be sold as a product or landfilled. • We know how to react NOx with NH4 (ammonia) to form N2 (nitrogen gas) and H2O (water) which can be released to the environment. • We do not have a treatment process for CO2.

26. CO2 Cap and Trade Concerns • CO2 is different from SO2 and NOx. • SO2 emissions from coal combustion can be reduced by 80% through coal switching and by over 99% through switching to natural gas. • CO2 emissions from coal combustion can be reduced by 33% by switching to oil and by 50% through switching to natural gas.

27. CO2 Cap and Trade Concerns • CO2 is different from SO2 and NOx. • When the acid rain provisions passed, US SO2 emissions totaled 23 million tons per year and almost 70% were from utilities and 24% from industries. • Current US CO2 emissions are 7,760 million tons per year (337 times historical SO2 emissions) with 33% from utilities and 19% from industries.

28. Air Quality Update Indiana is currently in attainment for all NAAQS but: EPA keeps raising (in this case lowering) the bar! Air Quality Standards At the end of 2009, all monitors in Indiana measured attainment for all NAAQS for the first time since Standards were established. How low will they go?!?!

29. Ozone Insert new graph from Catherine

30. Current Status of 8-Hour Ozone Areas through 2009 0.085 ppm

31. New 8-Hour Ozone Standard at 0.075 ppm Based on 2007-2009 monitoring data

32. Current Status of Annual PM 2.5 Areas (15 ug/m3) End of 2009

34. 24-Hour PM 2.5 (35 ug/m3) designations to be based on data from 2006-2008 34

36. Status of 2008 revised Lead Standard 0.15 ug/m3 36

37. MOVING TARGETSStatus of Review of NAAQS

38. NPDES Permits. Combined Sewers—97 IDEM lead and 3 EPA lead complete. Seven EPA lead communities left: Anderson, Elkhart, Evansville, Gary, Hammond, Mishawaka, South Bend. Dredging—West Branch Grand Cal in progress. Blue Green Algae. Office of Water QualityActivities

39. NPDES Permit Backlog Reduction 2005: 263 backlogged permits 2009: 6 backlogged permits List includes: USS Gary Works. Public Noticed. Comment Period Ended. Next step is issuance. US Midwest. Under EPA review. Arcelor Mittal Burns Harbor. Under EPA review Arcelor Mittal Indiana Harbor East. Drafting. Arcelor Mittal Indiana Harbor West. Drafting. Hoosier Merom. Drafting. Office of Water QualityActivities

40. Office of Water QualityRulemaking: Antidegradation What will this rule do? Increases public opportunities for information and input; Protects current "fishable/swimmable“ and other existing uses of waters; Allows for the issuance of legal permits for discharges to water; and, Does not allow the violation of water quality standards.

41. What is the process for this rule? IDEM held Stakeholder meetings over two years and drafted rule language. IDEM held four public meetings. Draft rule language was ‘second noticed’ for 45 days in the December 16, 2009 Indiana Register. After public notice, IDEM summarizes comments, may make changes to the rule Draft Rule will be presented to the Water Pollution Control Board for preliminary/final adoption. EPA will review the rule as well. Office of Water QualityRulemaking: Antidegradation

42. W.A.R.N. Assistance Visits Worker Adjustment and Retraining Notification Companies with >100 employees 60 day notice of closing or mass layoff Bankruptcy Notices Indiana Economic Digest (e-mail service) Other Sources

43. W.A.R.N. Assistance Visits Identify “at risk” companies Ones with potential waste generation Schedule Compliance Assistance Visit Identify any areas of concern relative to waste management Identify measures needed to return to compliance

44. W.A.R.N. Assistance Visits 137 companies on W.A.R.N. list 50% determined “at risk” 42% identified as generating waste 28% of inspected facilities had compliance issues 190,000 pounds of waste generated due to closing One company with 4 sites declaring bankruptcy with intention to abandon their waste and hazardous products. Referred to state cleanup.

45. Questions? Tom Easterly Commissioner Indiana Department of Environmental Management 317-232-8611 teasterly@idem.in.gov